The Scaled Tariff: A Mechanism for Combating Mercantilism and Producing Balanced Trade


Abstract

Jesse T. Richman
Assistant Professor, Department of Political Science and Geography,
Old Dominion University

Howard B. Richman
Research Associate, Ideal Taxes Association

Raymond L. Richman
Professor Emeritus, Graduate School of Public and International Affairs, University of Pittsburgh

In this article we first discuss whether or not the modern form of mercantilism that contributes to the trade deficit of the United States and other countries is a self-destructive and thus self-correcting strategy. We argue that it is not self-correcting. Then we discuss mechanisms that a trade-deficit country could utilize in order to produce balanced trade. The mechanisms differ in six respects, with the Scaled Tariff excelling in each.

Keywords: free trade, import certificate, mercantilism, tariff, trade deficit